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Otis just retired and will start receiving monthly pension payments at the end of this month. The first payment is 5 , 0 0 0

Otis just retired and will start receiving monthly pension payments at the end of this

month. The first payment is

5, 000

and will increase by

100

each month. What would

be the price of this perpetuity if the effective annual rate is

6 % ? [5, 247, 857.10]

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